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October 13, 2006, Newsletter Issue #48: Short-Term Insurance Co-Payments
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Tip of the Week
If you are acquiring short-term health insurance plans, you should know that they almost always function under a fee-for-service model, which means you will have to pay a variable co-insurance rate for health care goods and services received. Each company is different, and even different plans offered by the same company will vary, but generally speaking you can expect to pay coinsurance anywhere from 20%-50%. If your policy has a traditional 80/20 split, the insurance company will pay 80% of the charge for goods or services, and you would have to pay the 20% balance. Most health care providers expect payment of coinsurance at the time of service, although some may bill you after the fact.
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